Cormann says he's not ruling any budget options out

Finance Minister Mathias Cormann says the government is looking at all options to adjust the budget for new spending and delayed savings measures.

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Finance Minister Mathias Cormann (AAP)

The federal government won't rule anything out - including increasing taxes - to compensate for new national security spending and delayed budget savings.

Several of the Abbott government's budget measures have been held up in the Senate, with Labor and crossbench senators refusing to back them.

That, coupled with an additional $630 million boost for domestic spy agencies, has forced the government to go back through all government portfolios to find new savings.

Finance Minister Mathias Cormann is not ruling out increasing taxes nor dipping into the foreign aid budget.

"It's self evident that you have to make some adjustments," he told Sky News on Sunday.

"I'm not going to rule anything in or anything out."

Senator Cormann said the government will not add to the deficit and is still aiming for a "broad balance" of the budget in four years.

A surplus of one per cent of GDP is still the goal for 2023/24.

The government faces difficulty convincing the Senate to pass controversial budget measures including the $7 GP co-payment, deregulation of university fees and changes to the dole and age pension.

This week, Labor agreed to support some proposed welfare changes - handing the government $2.7 billion in savings.

Labor says the majority of the government's budget measures are unfair and target the poor unnecessarily.

Senator Cormann said the government was prepared to take controversial budget measures to the next election when Labor will have to propose its own savings plan.


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